Recession in the US.

[ShadowCat]

Okay everybody.  Here's my opinion on the spiking prices in America:

Yes, gas prices plays a big factor in the prices across the US.  With The truckers striking against diesel costs, our goods can't be delievered to the stores, therefore costing more to transport them to meet the needs of the truckers.  This is causing the price to rise in the goods, and people will quit buying certain items.

Sound familiar?

The Great Depression.
   Oh sure, we won't go through another one of those, but we're on the verge of a recession people. Yes, consumers are still buying and there's no overproduction. But what better what better time to smite America when it's economy is plummeting?

Discuss.

[JordAnime]

Recession is a normal (albeit unpleasant) part of the business cycle. A recession generally lasts from six to 18 months.  Interest rates usually fall in recessionary times to stimulate the economy by offering cheap rates at which to borrow money.

I don't understand economics, but I know recessions aren't uncommon.

[ShadowCat]

I don't understand why everybody is out to get everybody else's money.  Greedy bastards.

[Fleamo]

We don't even know if there is going to be a recession.  And if there is, we don't know how long or deep it will be.  But there are monetary policies in place which make it almost impossible for another great depression to happen. 

As of now it's just a slowdown in economic activity.  We haven't even reached one quarter of negative growth, let alone the minimum of two which are required for a recession. 

And recessions happen.  They're healthy and necessary.  Sorry.

[Witless]

And recessions happen.  They're healthy and necessary.  Sorry.

You won't be saying that when your parents get fired because companies have to reorganise or go bankrupt and the nation increases it's national debt because costs keep rising and the nation keeps loaning.
A recession is not a healthy thing. We try to avoid it by continuously trying to gain economic progress and growth.

Sure recession is possible, but it is by far not a healthy and necessary thing.

[Deku]

Like Jord and Fleamo said, I think recessions are normal.  America actually went through a pretty bad recession in the late 80's, even though it was only for a year.  Also, we saw a little recession in the early 2000's too (2002-2003).

So yeah, they're not new and are just part of the economic system we're in from what I've been told.

[Ezlo's Apprentice]

I'm not all that clued up on the American situation, but in the UK I can't help but feel that the media are doing all they can to talk us into a recession, perhaps earlier than there necessary (if there is one for us). It feels like a lot of over-enthusiastic scaremongering, made worse by "financial experts" who can predict the future about as well as I can.

The situation may be rough atm, self-inflicted by the Government perhaps, but banging on about it isn't going to help anyone.

[JordAnime]

In order to really get into the logistics of this, what you you need is an a degree in economics, which I don't think any of us have, but as sources tell us

Since 1854, the U.S.A. has encountered 32 cycles of expansions and contractions, with an average of 17 months of contraction and 38 months of expansion. However, they have been shorter and much less common in recent years. Since 1980, there have been only four recessions (see charts to see how stocks did in these periods).

The bottom line is they happen, it's not necessarily good for people but they happen just like expansion happens.  Cycles.

[GamePunk429]

I don't really see a recession truly coming. THe economy is down a bit but it is part of the normal business cycle as Jordan said.

The big thing is taht once this war is over the economy is going to fly through the roof like it does after every war. All these soldiers are gonna come home with their big war checks and buy cars and houses and everything else and boom the economy is back.

Wars always stimulate the economy is a proven fact, WWII got us out of the great depression.

But I will say we are in a different situation as when they come back we have to hope that there are jobs open to them. With outsourcing becoming a big problem in America, I have a feeling coming out of this economic slump may be a big more difficult that previous times.

[Witless]

I don't really see a recession truly coming. THe economy is down a bit but it is part of the normal business cycle as Jordan said.

The big thing is taht once this war is over the economy is going to fly through the roof like it does after every war. All these soldiers are gonna come home with their big war checks and buy cars and houses and everything else and boom the economy is back.

Wars always stimulate the economy is a proven fact, WWII got us out of the great depression.

But I will say we are in a different situation as when they come back we have to hope that there are jobs open to them. With outsourcing becoming a big problem in America, I have a feeling coming out of this economic slump may be a big more difficult that previous times.

You're forgetting about the stae the dollar is in right now. The economy doesn't just rely on people buying stuff in the US. It relies on many more factors that influence the whole world like the export and the BNP and ofcourse the whole oil ordeal.

[Deku]

I don't really see a recession truly coming. THe economy is down a bit but it is part of the normal business cycle as Jordan said.

The big thing is taht once this war is over the economy is going to fly through the roof like it does after every war. All these soldiers are gonna come home with their big war checks and buy cars and houses and everything else and boom the economy is back.

Wars always stimulate the economy is a proven fact, WWII got us out of the great depression.

But I will say we are in a different situation as when they come back we have to hope that there are jobs open to them. With outsourcing becoming a big problem in America, I have a feeling coming out of this economic slump may be a big more difficult that previous times.

You're forgetting about the stae the dollar is in right now. The economy doesn't just rely on people buying stuff in the US. It relies on many more factors that influence the whole world like the export and the BNP and ofcourse the whole oil ordeal.

Also, the reason why WWII stimulated our economy so much was due to the government-industrial partnership that was relatively new at the time (e.g., industrial corporations developing tanks and weaponry). It also hurt some areas of our country economically following the war (e.g., the flight of jobs from the rustbelt). 

But I agree, it will be more difficult coming out of this one based on the realities of our global economy.

[Link Reborn]

Sure, the economy isn't prosperous and healthy, but it isn't horrible either. I'm going to have to agree With Jord. There are cycles of ups and downs in the economy, much like the ups and downs of human emotions. Something always Influences it in cause and affect format, and they all recover eventually.

Overall, I'd say that were not in a very delicate stage of our economy. Things will be looking up soon, because michigan's economy is slightly recovering. Once its back to normal state, the nation can move on as a whole, so there is really nothing to worry about.

[Witless]

Sure, the economy isn't prosperous and healthy, but it isn't horrible either. I'm going to have to agree With Jord. There are cycles of ups and downs in the economy, much like the ups and downs of human emotions. Something always Influences it in cause and affect format, and they all recover eventually.

Overall, I'd say that were not in a very delicate stage of our economy. Things will be looking up soon, because michigan's economy is slightly recovering. Once its back to normal state, the nation can move on as a whole, so there is really nothing to worry about.

So you hope.

If the dollar doesn't regain it's value then it will only get worse and worse. Investors could drop their investment in dollars some time and go with a currency that has a higher value, which further drops the dollar's value.

[Link Reborn]

Sure, the economy isn't prosperous and healthy, but it isn't horrible either. I'm going to have to agree With Jord. There are cycles of ups and downs in the economy, much like the ups and downs of human emotions. Something always Influences it in cause and affect format, and they all recover eventually.

Overall, I'd say that were not in a very delicate stage of our economy. Things will be looking up soon, because michigan's economy is slightly recovering. Once its back to normal state, the nation can move on as a whole, so there is really nothing to worry about.

So you hope.

If the dollar doesn't regain it's value then it will only get worse and worse. Investors could drop their investment in dollars some time and go with a currency that has a higher value, which further drops the dollar's value.

Thats not what I'm saying. Obviously, if things don't get better, the only direction to go is worse, all i'm saying, eventually, everything will be fine. Its not going to stay like this forever. Even if the dollar does lose its value, it will get it back intevitably.

[Witless]

Sure, the economy isn't prosperous and healthy, but it isn't horrible either. I'm going to have to agree With Jord. There are cycles of ups and downs in the economy, much like the ups and downs of human emotions. Something always Influences it in cause and affect format, and they all recover eventually.

Overall, I'd say that were not in a very delicate stage of our economy. Things will be looking up soon, because michigan's economy is slightly recovering. Once its back to normal state, the nation can move on as a whole, so there is really nothing to worry about.

So you hope.

If the dollar doesn't regain it's value then it will only get worse and worse. Investors could drop their investment in dollars some time and go with a currency that has a higher value, which further drops the dollar's value.

Thats not what I'm saying. Obviously, if things don't get better, the only direction to go is worse, all i'm saying, eventually, everything will be fine. Its not going to stay like this forever. Even if the dollar does lose its value, it will get it back intevitably.

Sure it will get better eventually. But at what cost? That's the real problem.

[Link Reborn]

Sure, the economy isn't prosperous and healthy, but it isn't horrible either. I'm going to have to agree With Jord. There are cycles of ups and downs in the economy, much like the ups and downs of human emotions. Something always Influences it in cause and affect format, and they all recover eventually.

Overall, I'd say that were not in a very delicate stage of our economy. Things will be looking up soon, because michigan's economy is slightly recovering. Once its back to normal state, the nation can move on as a whole, so there is really nothing to worry about.

So you hope.

If the dollar doesn't regain it's value then it will only get worse and worse. Investors could drop their investment in dollars some time and go with a currency that has a higher value, which further drops the dollar's value.

Thats not what I'm saying. Obviously, if things don't get better, the only direction to go is worse, all i'm saying, eventually, everything will be fine. Its not going to stay like this forever. Even if the dollar does lose its value, it will get it back intevitably.

Sure it will get better eventually. But at what cost? That's the real problem.

Costly it may be, but your blowing it way out of proportion. We don't even know if things WILL get worse. If they do, I'm nearly positive that we will make the necessary adaptations for the time, such as not buying shit we don't need.

Once the nations out of that position, sure, there will be aftermath, but not for the people who are smart and use their money wisely. Thats not a big group of the population, by the way, so some people may be in trouble. But that won't necessarily cause problems for the whole nation on such a large scale. The people who have money right now are the smart ones. If this recession happens, they will know what to do. But the few people who will fall victim to their ignorance won't affect the whole nation, Witless.